When India introduced the Insolvency and Bankruptcy Code (IBC) in 2016, it was hailed as a landmark reform to resolve corporate distress and clean up the country’s balance sheets. For the first time, lenders had a structured timeline and legal muscle to recover dues from defaulting borrowers. It was a turning point for financial discipline in India Inc.

But less than a decade later, cracks are showing.

Across industries — from media and infrastructure to real estate and retail — a growing number of promoters are voluntarily entering insolvency not just to restructure, but to wash away liabilities and walk away. In many of these cases, operational assets are stripped, employees are left unpaid, and dues to small creditors remain unresolved — even as promoters, through proxies or affiliates, circle back to reclaim assets at discounted rates.

The Strategy Behind the Exit

Legal experts and insolvency professionals point to a pattern:

1. Deliberate default or over-leveraging
2. Minimal recovery for creditors, often through resolution plans with massive haircuts (sometimes over 90%)
3. Promoter-linked entities bidding to buy back assets at a fraction of the original cost
4. Employees and vendors left unpaid, with no recourse
5. Business resumes under a new name — often with the same ecosystem, client base, and leadership

High-Profile Examples Under Scrutiny

• Infrastructure and real estate firms where large creditors took deep haircuts and promoters retained influence behind new shell entities
• Media companies where broadcast licenses and content libraries were transferred or re-acquired post-resolution, with liabilities to employees, vendors, and content creators left behind
• Retail chains where store networks were rebranded or transferred, while operational creditors got pennies on the rupee

In some instances, the Committee of Creditors (CoC), driven by banks looking to recover whatever they can, approved plans that effectively amounted to settlements of convenience — often raising eyebrows within the insolvency ecosystem.

Why It’s a Problem

• Erosion of trust in the resolution system
• Small vendors and employees suffer, while large lenders settle for low recoveries
• Ethical concerns around backdoor promoter returns
• Potential rise in “strategic defaults” — where insolvency is planned, not forced

What Experts Say

Regulators and insolvency professionals have begun sounding the alarm. There’s growing demand for:

• Stricter scrutiny of resolution applicants to avoid promoter re-entry via proxies
• Tighter timelines and disclosures in the IBC process
• Safeguards for employees and operational creditors, who often remain unsecured
• Public interest audits in high-profile resolutions

The IBC was envisioned as a tool for revival, not a roadmap for reinvention without responsibility. As misuse grows, the line between genuine insolvency and strategic liability dumping continues to blur. If left unchecked, India risks losing the very credibility IBC was meant to create — and with it, the hope of building a cleaner, more accountable corporate culture.

Deeksha Vedantu had 11 students from their Science stream and 2 students from  Commerce stream secure places among the top 10 in Karnataka state—a powerful reaffirmation of their commitment to academic excellence.

The Science stream students with the top 10 scores in the state are:

• Sughosh Prashant Hegde and Neeti Holla scored 595 out of 600, state rank 5^th
• Daksha Dinesh Hegde, Raksha Dinesh Hegde, and R Trupti scored 594, standing 6^th in the state
• Sameeksha Anil Kulkarni bagged the 7^th spot with a score of 593
• Avni Bhat scored 591 and stood 9^th
• Anaghavalli R, Hethashree S, Prathiksha N, Sahana Gopalkrishana Bhagwat scored 590, bagging the 10^th top state rank

From the Commerce stream, Deekshith J S and K R Suriya stood 9^th in the state with a score of 591 out of 600.

Speaking about her stellar performance, the 5^th state Science stream topper, Neeti Holla, from Deeksha Vedantu, Excellence Batch, said, “Deeksha’s simultaneous focus on PU and competitive exams like JEE/NEET was a game-changer for me. The structured weekly tests, strategic study resources via the KNOWVO app, and round-the-clock faculty support made preparation both streamlined and stress-free. I always knew what to focus on. Pertinently, I scored 99.46 percentile in JEE Main Session 1 and expect the best from JEE Advanced.”

Raksha Dinesh Hegde, with the state rank 6, said, “Although I was primarily preparing for JEE Main (B.Arch.), I never lost sight of the importance of scoring well in PU. The bite-sized study materials and mock tests helped me revise efficiently. Deeksha’s approach doesn’t just prepare you—it empowers you. In Session 1 of JEE Main (B.Arch.), I attained the highest percentile score in Karnataka and the 5^th highest in India. My success speaks volumes about the efficacy of the integrated model of Deeksha Vedantu.”

Congratulating the students and teachers, Dr Sridhar G, Founder, Deeksha Vedantu, said, “We are immensely proud of the achievement of our children. Although, the results do not come to us as a surprise, we are supremely delighted. I compliment our children & teachers on their habit of delivering exceptional results. Remarkably, most of the top scorers in PU have also done comparably well in JEE Main session 1. This is another resounding vindication of Deeksha Vedantu’s excellence in achieving stellar learning outcomes.”

Deeksha Vedantu’s integrated pedagogical model continues to empower students to excel in both the Pre-University (PU) Board Examinations and national-level entrance exams like JEE, NEET, and KCET. This system of composite preparation—where competitive preparation is seamlessly woven into PU learning—has consistently delivered outstanding outcomes for over 25 years.